Question

Which of the following statements are NOT true of Florida's residual markets?

(A) The residual market is the preferred market for consumers who are looking for rates that are more competitive than carriers in the voluntary market.
(B) The residual market for auto insurance is the FAJUA.
(C) Florida businesses who are turned down for workers' compensation insurance by at least two carriers, and who have no unpaid W/C premium debt, can secure workers' compensation insurance through the FWCJUA.
(D) Insurance purchased from the residual market is more expensive than that purchased from the voluntary market.

Answer 1

The statements that are NOT true of Florida's residual markets are A and D.

Step-by-step explanation:

A) The statement (A) is false. The residual market is actually the market of last resort for consumers who have been unable to obtain coverage in the voluntary market or who have been canceled or non-renewed by their previous insurance carrier. It is not the preferred market for consumers looking for more competitive rates.

B) The statement (B) is true. The residual market for auto insurance in Florida is indeed the Florida Automobile Joint Underwriting Association (FAJUA).

C) The statement (C) is true. Florida businesses that are turned down for workers' compensation insurance by at least two carriers and do not have any unpaid workers' compensation premium debt can secure insurance through the Florida Workers' Compensation Joint Underwriting Association (FWCJUA).

D) The statement (D) is false. Insurance purchased from the residual market is generally more expensive than that purchased from the voluntary market, as it is meant for higher-risk individuals who are unable to obtain coverage elsewhere.